Analysis of the arrangement
Review of the management package, its economic structuring, and clauses such as vesting or good/bad leaver.
Disputes Relating to Management Packages
Independent expert opinion on the valuation of management packages. Analysis of tax risks and the formation of the gain.
When do these disputes arise?
The expert opinion involves analysing the valuation of management packages and their financial or tax consequences.
It is required when the tax authorities, a fund, an issuer, or a manager challenges the subscription price, the tax treatment of the gains, or the application of contractual clauses.
METHODOLOGY
Our approach combines legal analysis of the arrangements with financial valuation of the optional instruments in accordance with market standards.
Analysis of opposing positions
Critical analysis of the methods and assumptions used by the tax authorities or other parties.
Valuation of the instruments
Application of appropriate models such as Black-Scholes or Monte-Carlo with documented parameterisation.
Report and assistance
Drafting of a binding report and assistance in discussions with the tax authorities or in proceedings.
Primarily the tax authorities, but also managers or funds in connection with the application of contractual clauses.
The main risk is the requalification of gains as employment income, with significant tax and social security consequences.
We use models such as Black-Scholes, recombining trees, and Monte-Carlo simulations, adapted to the specific features of management packages: parameterisation (volatility, maturity) and consideration of clauses (vesting, good/bad leaver, illiquidity).
Yes. Our analyses are documented in accordance with market standards and can be used in tax audits or litigation.
WHAT WE OFFER
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Expertise in optional instruments
Command of valuation models for options and complex instruments.
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Tax experience
Understanding of requalification issues and the expectations of the tax authorities.
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Admissible reports
Structured deliverables to support a position before the tax authorities or the courts.
